CONTACTS:
Shelly
Doran 317.685.7330 Investors
Les Morris 317.263.7711 Media
FOR IMMEDIATE RELEASE
SIMON PROPERTY GROUP ANNOUNCES STRONG FIRST QUARTER RESULTS
AND DECLARES QUARTERLY DIVIDENDS
Indianapolis, Indiana—May 6, 2004...Simon Property Group, Inc. (the "Company") (NYSE:SPG) today announced results for the quarter ended March 31, 2004:
The Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States ("GAAP"). The Company believes that FFO is helpful to investors because it is a widely recognized measure of the performance of real estate investment trusts and provides a relevant basis for comparison among REITs. A reconciliation of net income to FFO is provided in the financial statement section of this press release.
Comparable retail sales per square foot increased 5.4%, to $411 at March 31, 2004 as compared to $390 at March 31, 2003, while total retail sales per square foot increased 5.7%, to $408 at March 31, 2004 as compared to $386 at March 31, 2003. Average base rents for mall and freestanding stores in the regional mall portfolio were $32.75 per square foot at March 31, 2004, an increase of $1.47 or 4.7%, from March 31, 2003. The average initial base rent for new mall store leases signed during the first quarter of 2004 was $38.61, an increase of $6.25 or 19% over the tenants who closed or whose leases expired. Occupancy for mall and freestanding stores in the regional malls at March 31, 2004 was 91.1%, as compared to 91.7% at March 31, 2003.
"The Company had a strong first quarter," said David Simon, Chief Executive Officer. "We experienced healthy increases in retail sales and continued to re-lease space at industry-leading spreads. While our occupancy rate was down as a result of tenant bankruptcy closures in the last six months, retailer demand for new space remains very solid and will support our retenanting efforts. We have completed nearly $500 million of high-quality asset acquisitions since year-end at attractive yields. These acquisitions, coupled with the strength of our core portfolio and robust development pipeline, position us well for the remainder of 2004."
Dividends and Common Stock Repurchase Program
Today the Company announced a common stock dividend of $0.65 per share to be paid on May 28, 2004 to shareholders of record on May 17, 2004.
The Company also declared dividends on its two public issues of preferred stock, payable on June 30, 2004 to shareholders of record on June 16, 2004:
The Company also announced that its Board of Directors has authorized a common stock repurchase program under which the company may purchase up to $250 million of its common stock over the next twelve months as market conditions warrant. The shares may be repurchased in the open market or in privately negotiated transactions.
Development Activities
Yesterday, the Company's Board of Directors approved the development of Coconut Point, a 166 acre town center located in a master-planned 500-acre mixed-use development located in Estero/Bonita Springs on the west coast of Florida, halfway between Ft. Myers and Naples. Coconut Point will be an open-air, mixed-use mainstreet regional shopping center with a community center component featuring 18 acres of lakes, a pedestrian boardwalk and unique architecture. Coconut Point will include 1.2 million square feet of retail space, 90,000 square feet of office condominiums and 200 to 400 residential units.
Coconut Point's retail space, designed by world-renowned architects, The Jerde Partnership of Venice, CA, will be comprised of three components. The village will be a mainstreet design anchored by Dillard's, Muvico Theatres, Barnes & Noble and four restaurants. The Village is expected to include small shop tenants such as Apple, Hollister, J. Jill, Jos. A. Banks, Talbots and Williams-Sonoma. The community center will be anchored by Bed Bath & Beyond, Best Buy, Designer Shoe Warehouse, Office Max, Old Navy, PetsMart, Pier One, Ross Dress for Less and Sports Authority. Connecting the village and the community center will be the third component, a unique and exciting concept called The Lakefront. This environment will contain entertainment, casual and sit-down dining and shops.
Residential condominiums will be developed over the mainstreet above two of the retail buildings, with the balance of the units, a clubhouse and a pool on a 3.7 acre parcel behind the main street. The development and sale of the residential condominiums will be undertaken by a third party developer who specializes in residential products.
Phase I, which includes the community center, The Lakefront shops and a portion of the village inclusive of the Muvico Theater, is expected to open in October of 2005. Phase II, which includes the balance of the main street from Barnes & Noble to Dillard's, along with the commercial and residential condominiums, is projected to open in September of 2006. The Company owns the project in a 50/50 joint venture with Dillard's, Inc. Gross costs are expected to approximate $224 million and construction is expected to commence in June of 2004.
The Company also has five new development projects currently under construction:
2
Property Group. Gross costs are expected to approximate $108 million and the project is scheduled to open in the fourth quarter of 2004.
The Company's most significant expansion and redevelopment projects underway are the redevelopment of SouthPark Mall in Charlotte, North Carolina and the expansion of The Forum Shops at Caesars. At SouthPark, a new 153,000 square foot Nordstrom, a 60,000 square foot Hecht's expansion, and 50,000 additional square feet of small shops opened in March of 2004. An additional phase of the redevelopment of SouthPark is under construction which will add Galyan's (opening in the third quarter of 2004), a food court, and two restaurants. Expected gross costs for the SouthPark redevelopment are $97 million. The phase III expansion of Forum Shops will open in October of 2004, adding 175,000 square feet of unique luxury designers, restaurants, and one-of-a kind retailers. Expected gross costs for phase III of Forum Shops are $139 million.
Acquisitions
On February 5, 2004, the Company acquired a 95% interest in Gateway Shopping Center in Austin, Texas for $107 million. This 513,000 square foot project is 99% leased and is located at the confluence of Mo-Pac Expressway (Loop 1), Research Boulevard (Highway 183), and Capital of Texas Highway (Loop 360)—three of the major arterial roads in Austin. The joining of these three highways has become known as the Golden Triangle section of Austin.
Gateway's tenant line-up includes The Container Store, Whole Foods, Smith & Hawken, Linens 'N Things, Old Navy, Best Buy, Ulta 3 Salon and Cosmetics, Comp USA and Regal Cinema. In the fall Crate & Barrel will open its only store in the Austin market in a two-level 35,000 square foot location. Average small shop sales for the center are approximately $370 per square foot.
3
On April 27, 2004, the California Public Employees' Retirement System ("CalPERS") and the State of Michigan Treasury ("Michigan") sold their interests in Bangor Mall in Bangor, Maine (50% interest) and Montgomery Mall in Montgomeryville, Pennsylvania (57.31% interest) to their existing partners. In connection with these transactions, Simon Property Group's interest in Bangor Mall increased to 67.6% from 32.6% and its interest in Montgomery Mall increased to 54.4% from 23.1%. The Company's cost to acquire these additional ownership interests was approximately $67 million.
Bangor Mall comprises 655,000 square feet and is anchored by Filene's, JCPenney and Sears, with Dick's Sporting Goods scheduled to open on an available anchor pad in November of 2004. Bangor Mall generates sales of approximately $370 per square foot, was 91% leased at December 31, 2003, and is the only mall in the city of Bangor. Montgomery Mall is a 1.1 million square foot center in suburban Philadelphia and is anchored by JCPenney, Macy's, Sears and Strawbridge's. Montgomery Mall generates sales of approximately $360 per square foot and was 92% leased at December 31, 2003.
On May 4, 2004, the Company completed the purchase of a 100% interest in Plaza Carolina in San Juan, Puerto Rico for $309 million from a partnership owned 50% by CalPERS and 50% by Michigan. Plaza Carolina is the premier shopping destination in the entire northeast sector of Puerto Rico and receives over 30,000 visitors per day. Located in Carolina, southeast of San Juan, Plaza Carolina comprises 1.1 million square feet and is anchored by JCPenney, Sears, a supermarket, a movie theater and four junior anchors. Specialty shop retailers include Limited Too, PacSun, d.e.m.o., Claire's Boutique, Casa Febus, GAP, Rave, Charlotte Russe, Zales Jewelers, World Footlocker, Old Navy and Champs Sports. Built in 1978, Plaza Carolina generates total annual sales of approximately $275 million and sales per square foot of over $450. The center has maintained a 98% average historical occupancy rate over the last five years.
Mall of America Update
The September 10, 2003 Order of the Federal District Court in Minnesota requires the Company to disgorge "net profits" received as a result of its ownership interest in Mall of America from October, 1999 to the present. The Court-appointed Special Master issued his findings regarding his computation of net profits in a memorandum issued May 3, 2004. As a result of this memorandum, the Company recorded an additional estimated loss on the disposition of this asset in the first quarter of $13.5 million, or $0.05 per share. This item adversely impacted net income, but did not affect Funds from Operations. We have appealed the Court's Order to the United States Court of Appeals for the Eighth Circuit. We will also be appealing the Special Master's findings. The Company has not recorded earnings from Mall of America since the date of the Order.
2004 Guidance
The Company updated its 2004 earnings guidance today. Diluted net income per share is expected to be within a range of $1.61 to $1.65 and diluted FFO per share is expected to be within a range of $4.28 to $4.32.
The following table provides the reconciliation of estimated diluted net income per share to diluted FFO per share.
| For the twelve months ended December 31, 2004 |
Low Range |
High Range |
|||||
|---|---|---|---|---|---|---|---|
| Estimated diluted net income per share | $ | 1.61 | $ | 1.65 | |||
| Depreciation and amortization including our share of joint ventures | 2.68 | 2.68 | |||||
| (Gain)/Loss on sales of real estate and discontinued operations | 0.00 | 0.00 | |||||
| Impact of additional dilutive securities for FFO per share | (0.01 | ) | (0.01 | ) | |||
| Estimated diluted FFO per share | $ | 4.28 | $ | 4.32 | |||
4
Forward-Looking Statements
Estimates of future net income per share and FFO and other statements regarding future developments and operations are forward-looking statements within the meaning of the federal securities laws. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained, and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Those risks and uncertainties include, but are not limited to, the national, regional and local economic climate, competitive market forces, changes in market rental rates, trends in the retail industry, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, acquisitions and changes in market rates of interest or foreign currency. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K for a discussion of such risks and uncertainties.
Conference Call
The Company will provide an online simulcast of its quarterly conference call at www.simon.com (in the About Simon section), www.companyboardroom.com, and www.streetevents.com. To listen to the live call, please go to any of these websites at least fifteen minutes prior to the call to register, download and install any necessary audio software. The call will begin at 11:00 a.m. Eastern Daylight Time (New York) tomorrow, May 7th. An online replay will be available for approximately 90 days at www.simon.com.
Supplemental Materials
The Company will publish a supplemental information package tomorrow morning which will be available at www.simon.com in the Investor Relations section, Other Financial Reports tab. It will also be furnished to the SEC as part of a Form 8-K. If you wish to receive a copy via mail, please call 800-461-3439.
Simon Property Group, Inc. (NYSE:SPG), headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of income-producing properties, primarily regional malls and community shopping centers. Through its subsidiary partnerships, it currently owns or has an interest in 247 properties in North America containing an aggregate of 192 million square feet of gross leasable area in 37 states plus Canada and Puerto Rico. The Company also holds interests in 48 assets in Europe (in France, Italy, Poland and Portugal). Additional Simon Property Group information is available at www.simon.com.
5
SIMON
Statements of Operations
Unaudited
(In thousands, except as noted)
| |
For the Three Months Ended March 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| |
2004 |
2003 |
||||||
| REVENUE: | ||||||||
| Minimum rent | $ | 355,609 | $ | 327,416 | ||||
| Overage rent | 9,509 | 8,036 | ||||||
| Tenant reimbursements | 174,063 | 159,613 | ||||||
| Management fees and other revenue | 17,913 | 18,826 | ||||||
| Other income | 27,219 | 20,972 | ||||||
| Total revenue | 584,313 | 534,863 | ||||||
EXPENSES: |
||||||||
| Property operating | 85,123 | 77,670 | ||||||
| Depreciation and amortization | 138,385 | 120,947 | ||||||
| Real estate taxes | 60,386 | 51,802 | ||||||
| Repairs and maintenance | 22,477 | 22,301 | ||||||
| Advertising and promotion | 12,635 | 11,458 | ||||||
| Provision for credit losses | 3,415 | 4,363 | ||||||
| Home and regional office costs | 20,965 | 18,753 | ||||||
| General and administrative | 3,564 | 3,044 | ||||||
| Other | 8,893 | 5,954 | ||||||
| Total operating expenses | 355,843 | 316,292 | ||||||
OPERATING INCOME |
228,470 |
218,571 |
||||||
Interest expense |
153,386 |
151,197 |
||||||
| Income before minority interest | 75,084 | 67,374 | ||||||
Minority interest |
(861 |
) |
(1,833 |
) |
||||
| (Loss)/Gain on sales of assets and other, net | (13,500 | )(A) | 23 | |||||
| Income tax expense of taxable REIT subsidiaries | (2,010 | ) | (1,963 | ) | ||||
| Income before unconsolidated entities | 58,713 | 63,601 | ||||||
Income from other unconsolidated entities |
17,072 |
21,380 |
||||||
| Income from continuing operations | 75,785 | 84,981 | ||||||
Results of operations from discontinued operations |
(209 |
) |
3,085 |
|||||
| Gain on disposal or sale of discontinued operations, net | 91 | 4,252 | ||||||
| Income before allocation to limited partners | 75,667 | 92,318 | ||||||
| LESS: | ||||||||
| Limited partners' interest in the Operating Partnership | 14,575 | 18,661 | ||||||
| Preferred distributions of the Operating Partnership | 4,905 | 2,835 | ||||||
| NET INCOME | 56,187 | 70,822 | ||||||
Preferred dividends |
(7,836 |
) |
(15,682 |
) |
||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 48,351 | $ | 55,140 | ||||
6
SIMON
Per Share Data and Selected Mall Operating Statistics
Unaudited
| |
Three Months Ended March 31, |
||||||
|---|---|---|---|---|---|---|---|
| |
2004 |
2003 |
|||||
| PER SHARE DATA: | |||||||
Basic Earnings Per Common Share: |
|||||||
Income from continuing operations |
$ |
0.24 |
$ |
0.26 |
|||
| Discontinued operations—results of operations and gain on disposal or sale, net | 0.00 | 0.03 | |||||
| Net income available to common shareholders | $ | 0.24 | $ | 0.29 | |||
| Percentage Change | -17.2 | % | |||||
Diluted Earnings Per Common Share: |
|||||||
Income from continuing operations |
$ |
0.24 |
$ |
0.26 |
|||
| Discontinued operations—results of operations and gain on disposal or sale, net | 0.00 | 0.03 | |||||
| Net Income available to common shareholders | $ | 0.24 | $ | 0.29 | |||
| Percentage Change | -17.2 | % | |||||
SELECTED U.S. REGIONAL MALL OPERATING STATISTICS
| |
March 31, 2004 |
March 31, 2003 |
|||||
|---|---|---|---|---|---|---|---|
| Occupancy(B) | |||||||
Consolidated Assets |
90.6 |
% |
91.2 |
% |
|||
| Unconsolidated Assets | 91.8 | % | 92.6 | % | |||
| Total Portfolio | 91.1 | % | 91.7 | % | |||
Average rent per square foot(B) |
|||||||
Consolidated Assets |
$ |
31.82 |
$ |
30.29 |
|||
| Unconsolidated Assets | $ | 34.20 | $ | 32.96 | |||
| Total Portfolio | $ | 32.75 | $ | 31.28 | |||
Comparable sales per square foot(C) |
|||||||
Consolidated Assets |
$ |
397 |
$ |
374 |
|||
| Unconsolidated Assets | $ | 437 | $ | 421 | |||
| Total Portfolio | $ | 411 | $ | 390 | |||
Total sales per square foot(C) |
|||||||
Consolidated Assets |
$ |
393 |
$ |
370 |
|||
| Unconsolidated Assets | $ | 433 | $ | 417 | |||
| Total Portfolio | $ | 408 | $ | 386 | |||
7
SIMON
Reconciliation of Net Income to FFO(D)
Unaudited
(In thousands, except as noted)
The Company considers FFO a key measure of its operating performance that is not specifically defined by GAAP. The Company believes that FFO is helpful to investors because it is a widely recognized measure of the performance of REITs and it provides a relevant basis for comparison among REITs. The Company also uses this measure internally to measure the operating performance of the portfolio.
| |
Three Months Ended March 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| |
2004 |
2003 |
||||||
| Net Income(E)(F)(G) | $ | 56,187 | $ | 70,822 | ||||
| Plus: Limited partners' interest in the Operating Partnership and preferred distributions of the Operating Partnership | 19,480 | 21,496 | ||||||
| Plus: Depreciation and amortization from consolidated properties and discontinued operations | 136,251 | 122,077 | ||||||
| Plus: Simon's share of depreciation and amortization from unconsolidated entities | 41,492 | 34,673 | ||||||
| Plus: Loss/(Gain) on sales of real estate and discontinued operations | 13,409 | (4,275 | ) | |||||
| Less: Minority interest portion of depreciation and amortization | (1,081 | ) | (1,334 | ) | ||||
| Less: Preferred distributions and dividends | (12,741 | ) | (18,518 | ) | ||||
| FFO of the Simon Portfolio | $ | 252,997 | $ | 224,941 | ||||
| Per Share Reconciliation: | ||||||||
Diluted net income per share |
$ |
0.24 |
$ |
0.29 |
||||
| Plus: Depreciation and amortization from consolidated properties and the Company's share of depreciation and amortization from unconsolidated affiliates, net of minority interest portion of depreciation and amortization | 0.67 | 0.62 | ||||||
| Plus: Loss (gain) on sales of real estate and discontinued operations | 0.05 | (0.02 | ) | |||||
| Less: Impact of additional dilutive securities for FFO per share | 0.00 | 0.00 | ||||||
| Diluted FFO per share | $ | 0.96 | $ | 0.89 | ||||
Details for per share calculations: |
||||||||
| FFO of the Simon Portfolio | $ | 252,997 | $ | 224,941 | ||||
Adjustments for dilution calculation: |
||||||||
| Impact of Series B and C preferred stock conversion & option exercise(H) | 1,274 | 7,849 | ||||||
| Diluted FFO of the Simon Portfolio | $ | 254,271 | $ | 232,790 | ||||
| Basic weighted average shares outstanding | 202,250 | 187,070 | ||||||
| Weighted average limited partnership units outstanding | 60,587 | 62,413 | ||||||
| Basic weighted average shares and units outstanding | 262,837 | 249,483 | ||||||
Adjustments for dilution calculation: |
||||||||
| Effect of stock options | 964 | 674 | ||||||
| Impact of Series B preferred 6.5% convertible stock | 0 | 12,491 | ||||||
| Impact of Series C cumulative preferred 7% convertible units | 1,968 | 0 | ||||||
| Diluted weighted average shares and units outstanding | 265,769 | 262,648 | ||||||
| Basic FFO per share | $ | 0.96 | $ | 0.90 | ||||
| Percent Increase | 6.7 | % | ||||||
| Diluted FFO per share | $ | 0.96 | $ | 0.89 | ||||
| Percent Increase | 7.9 | % | ||||||
8
SIMON
Balance Sheets
Unaudited
(In thousands, except as noted)
| |
March 31, 2004 |
December 31, 2003 |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| ASSETS: | |||||||||
| Investment properties, at cost | $ | 15,344,494 | $ | 14,971,823 | |||||
| Less—accumulated depreciation | 2,706,928 | 2,556,578 | |||||||
| 12,637,566 | 12,415,245 | ||||||||
| Cash and cash equivalents | 489,757 | 535,623 | |||||||
| Tenant receivables and accrued revenue, net | 257,466 | 305,200 | |||||||
| Investment in unconsolidated entities, at equity | 1,646,948 | 1,811,773 | |||||||
| Deferred costs, other assets, and minority interest, net | 626,870 | 616,880 | |||||||
| Total assets | $ | 15,658,607 | $ | 15,684,721 | |||||
| LIABILITIES: | |||||||||
| Mortgages and other indebtedness | $ | 10,506,183 | $ | 10,266,388 | |||||
| Accounts payable, accrued expenses and deferred revenue | 566,829 | 667,610 | |||||||
| Cash distributions and losses in partnerships and joint ventures, at equity | 23,238 | 14,412 | |||||||
| Other liabilities, minority interest and accrued dividends | 198,674 | 280,414 | |||||||
| Total liabilities | 11,294,924 | 11,228,824 | |||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||
LIMITED PARTNERS' INTEREST IN THE OPERATING PARTNERSHIP |
828,003 |
859,050 |
|||||||
LIMITED PARTNERS' PREFERRED INTEREST IN THE OPERATING PARTNERSHIP |
258,220 |
258,220 |
|||||||
SHAREHOLDERS' EQUITY |
|||||||||
CAPITAL STOCK OF SIMON PROPERTY GROUP, INC. (750,000,000 total shares authorized, $.0001 par value, 237,996,000 shares of excess common stock): |
|||||||||
All series of preferred stock, 100,000,000 shares authorized, 12,000,000 and 12,078,012 issued and outstanding, respectively. Liquidation values $375,000 and $376,960, respectively |
365,652 |
367,483 |
|||||||
Common stock, $.0001 par value, 400,000,000 shares authorized, 205,642,447 and 200,876,552 issued and outstanding, respectively |
21 |
20 |
|||||||
Class B common stock, $.0001 par value, 12,000,000 shares authorized, 8,000 and 3,200,000 issued and outstanding, respectively |
— |
1 |
|||||||
Class C common stock, $.0001 par value, 4,000 shares authorized, issued and outstanding |
— |
— |
|||||||
Capital in excess of par value |
4,160,063 |
4,121,332 |
|||||||
| Accumulated deficit | (1,180,654 | ) | (1,097,317 | ) | |||||
| Accumulated other comprehensive income | 16,240 | 12,586 | |||||||
| Unamortized restricted stock award | (31,344 | ) | (12,960 | ) | |||||
| Common stock held in treasury at cost, 2,098,555 shares | (52,518 | ) | (52,518 | ) | |||||
| Total shareholders' equity | 3,277,460 | 3,338,627 | |||||||
| $ | 15,658,607 | $ | 15,684,721 | ||||||
9
SIMON
Joint Venture Statements of Operations
Unaudited
(In thousands, except as noted)
| |
For the Three Months Ended March 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| |
2004 |
2003 |
||||||
| REVENUE: | ||||||||
| Minimum rent | $ | 258,653 | $ | 206,026 | ||||
| Overage rent | 5,757 | 5,264 | ||||||
| Tenant reimbursements | 133,341 | 106,040 | ||||||
| Other income | 40,780 | 30,430 | ||||||
| Total revenue | 438,531 | 347,760 | ||||||
EXPENSES: |
||||||||
| Property operating | 94,036 | 57,885 | ||||||
| Depreciation and amortization | 80,784 | 60,940 | ||||||
| Real estate taxes | 39,347 | 35,436 | ||||||
| Repairs and maintenance | 19,855 | 18,667 | ||||||
| Advertising and promotion | 10,399 | 8,146 | ||||||
| Provision for credit losses | 2,609 | 2,752 | ||||||
| Other | 22,760 | 17,152 | ||||||
| Total operating expenses | 269,790 | 200,978 | ||||||
OPERATING INCOME |
168,741 |
146,782 |
||||||
Interest expense |
111,791 |
86,205 |
||||||
| Income Before Minority Interest and Unconsolidated Entities | 56,950 | 60,577 | ||||||
Income from unconsolidated entities |
(689 |
) |
2,294 |
|||||
Minority interest |
0 |
(92 |
) |
|||||
| Income from Continuing Operations | 56,261 | 62,779 | ||||||
Income from discontinued joint venture interests(I) |
— |
3,386 |
||||||
| NET INCOME | $ | 56,261 | $ | 66,165 | ||||
| Third-party investors' share of Net Income | $ | 33,020 | $ | 39,323 | ||||
| Our share of Net Income | 23,241 | 26,842 | ||||||
| Amortization of Excess Investment | 6,169 | 5,462 | ||||||
| Income from Unconsolidated Joint Ventures | $ | 17,072 | $ | 21,380 | ||||
10
SIMON
Joint Venture Balance Sheets
Unaudited
(In thousands, except as noted)
| |
March 31, 2004 |
December 31, 2003 |
||||||
|---|---|---|---|---|---|---|---|---|
| ASSETS: | ||||||||
| Investment properties, at cost | $ | 10,189,277 | $ | 10,239,929 | ||||
| Less—accumulated depreciation | 1,821,259 | 1,798,564 | ||||||
| 8,368,018 | 8,441,365 | |||||||
Cash and cash equivalents |
277,860 |
308,781 |
||||||
| Tenant receivables | 225,235 | 262,893 | ||||||
| Investment in unconsolidated entities | 106,195 | 94,853 | ||||||
| Deferred costs and other assets | 209,205 | 227,485 | ||||||
| Total assets | $ | 9,186,513 | $ | 9,335,377 | ||||
| LIABILITIES AND PARTNERS' EQUITY: | ||||||||
| Mortgages and other indebtedness | $ | 6,710,823 | $ | 6,643,052 | ||||
| Accounts payable, accrued expenses and deferred revenue | 293,840 | 310,190 | ||||||
| Other liabilities | 34,601 | 74,206 | ||||||
| Total liabilities | 7,039,264 | 7,027,448 | ||||||
| Preferred units | 152,450 | 152,450 | ||||||
| Partners' equity | 1,994,799 | 2,155,479 | ||||||
| Total liabilities and partners' equity | $ | 9,186,513 | $ | 9,335,377 | ||||
| Our Share of: | ||||||||
| Total assets | $ | 3,771,388 | $ | 3,861,497 | ||||
| Partners' equity | $ | 861,399 | $ | 885,149 | ||||
| Add: Excess Investment, net | 762,311 | 912,212 | ||||||
| Our net investment in joint ventures | $ | 1,623,710 | $ | 1,797,361 | ||||
| Mortgages and other indebtedness | $ | 2,764,981 | $ | 2,739,630 | ||||
Excess Investment represents the unamortized difference of our investment over our share of the equity in the underlying net assets of the partnerships and joint ventures acquired. We generally amortize excess investment over the life of the related Properties, typically 35 years, and the amortization is included in income from unconsolidated entities.
11
SIMON
Footnotes to Financial Statements
Unaudited
Notes:
12